Marijuana stocks floundered in a sea of flotsam Monday as the budding cannabis industry cooled off after a couple of businesses came under fire in recent weeks.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, fell 2.5% to 214.36. Elsewhere, the ETFMG Alternative Harvest ETF tumbled nearly 2% to US$27.74, while the OTCQX Cannabis Index traded lower at 729.61.
US and Canadian officials have targeted both CannTrust Holdings Inc and Curaleaf Holdings Inc for improper businesses practices.
Last month, CannTrust halted sales of its cannabis products after Health Canada, the country’s national public health arm, declared the company non-compliant for growing marijuana in unauthorized rooms in its facility. With ongoing investigations by both Health Canada, and the Royal Canadian Mounted Police, pot companies are betting that the probes will leave CannTrust with production assets that can be snatched up at fire sale prices. CannTrust tumbled 6.6% to US$2.12 in the New York Stock Exchange.
Elsewhere, shares of Curaleaf were trading 4% lower at US$7.52 on the OTC Markets. The US-based medical cannabis company landed a partnership with CVS to sell CBD products, but the Food and Drug Administration warned last week that it was selling the products illegally with unsubstantiated treatment claims.
Shares in Green Organic Dutchman Holdings Ltd edged up slightly to US$2.35 on the OTC Markets after the Toronto-based organic cannabis producer extended its Health Canada licenses last week for its greenhouse facility in Ancaster, Ontario until August 2022.
Green Thumb Industries Inc, a cannabis consumer packaged goods company, continued to enjoy a boost from scoring a new retail license to sell its products in Culver City, California. The company owns rapidly expanding retail cannabis stores called Rise and Essence. Shares in the company were trading up at US$9.50 on the OTC Markets.
Contact Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive